Labor Relations Codal
Transcript of Labor Relations Codal
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BOOK FIVE
LABOR RELATIONS
Title I
POLICY AND DEFINITIONS
Chapter I
POLICY
Art. 211. Declaratio o! Polic".
A. It is the policy of the State:a. To promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation, as
modes of settling labor or industrial disputes;
b. To promote free trade unionism as an instrument for the enhancement of
democracy and the promotion of social justice and development;
c. To foster the free and voluntary organization of a strong and united labormovement;
d. To promote the enlightenment of or!ers concerning their rights and obligationsas union members and as employees;
e. To provide an ade"uate administrative machinery for the e#peditious settlement of
labor or industrial disputes;
f. To ensure a stable but dynamic and just industrial peace; and
g. To ensure the participation of or!ers in decision and policy$ma!ing processes
affecting their rights, duties and elfare.
%. To encourage a truly democratic method of regulating the relations beteen theemployers and employees by means of agreements freely entered into through collectivebargaining, no court or administrative agency or official shall have the poer to set or fi#
ages, rates of pay, hours of or! or other terms and conditions of employment, e#cept
as otherise provided under this &ode. 'As amended by Section (, )epublic Act *o.+-, /arch 0-, -1213
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&hapter II
456I*ITI7*S
Art. 212. De!iitio#.
a. 8&ommission8 means the *ational 9abor )elations &ommission or any of its divisions,as the case may be, as provided under this &ode.
b. 8%ureau8 means the %ureau of 9abor )elations andor the 9abor )elations 4ivisions inthe regional offices established under residential 4ecree *o. -, in the 4epartment of
9abor.
c. 8%oard8 means the *ational &onciliation and /ediation %oard established under
5#ecutive 7rder *o. -0+.
d. 8&ouncil8 means the Tripartite
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!. 8=nfair labor practice8 means any unfair labor practice as e#pressly defined by the &ode.
l. 89abor dispute8 includes any controversy or matter concerning terms and conditions of
employment or the association or representation of persons in negotiating, fi#ing,
maintaining, changing or arranging the terms and conditions of employment, regardlessof hether the disputants stand in the pro#imate relation of employer and employee.
m. 8/anagerial employee8 is one ho is vested ith the poers or prerogatives to lay don
and e#ecute management policies andor to hire, transfer, suspend, lay$off, recall,
discharge, assign or discipline employees. Supervisory employees are those ho, in the
interest of the employer, effectively recommend such managerial actions if the e#erciseof such authority is not merely routinary or clerical in nature but re"uires the use of
independent judgment. All employees not falling ithin any of the above definitions are
considered ran!$and$file employees for purposes of this %oo!.
n. 8
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points of entrance to and e#it from said establishment. 'As amended by Section >,
)epublic Act *o. +-, /arch 0-, -1213
Title II*ATI7*A9 9A%7) )59ATI7*S &7//ISSI7*
&hapter I
&)5ATI7* A*4 &7/7SITI7*
Art. 21$. Natioal La%or Relatio# Co&&i##io.There shall be a *ational 9abor )elations
&ommission hich shall be attached to the 4epartment of 9abor and 5mployment for programand policy coordination only, composed of a &hairman and fourteen '->3 /embers.
6ive '3 members each shall be chosen from among the nominees of the or!ers and employers
organizations, respectively. The &hairman and the four '>3 remaining members shall come from
the public sector, ith the latter to be chosen from among the recommendees of the Secretary of
9abor and 5mployment.
=pon assumption into office, the members nominated by the or!ers and employers
organizations shall divest themselves of any affiliation ith or interest in the federation orassociation to hich they belong.
The &ommission may sit en banc or in five '3 divisions, each composed of three '(3 members.
Subject to the penultimate sentence of this paragraph, the &ommission shall sit en banc only for
purposes of promulgating rules and regulations governing the hearing and disposition of casesbefore any of its divisions and regional branches, and formulating policies affecting its
administration and operations. The &ommission shall e#ercise its adjudicatory and all other
poers, functions, and duties through its divisions. 7f the five '3 divisions, the first, second andthird divisions shall handle cases coming from the *ational &apital )egion and the parts of9uzon; and the fourth and fifth divisions, cases from the
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certification to this effect signed by the residing &ommissioner of the division shall be issued
and a copy thereof attached to the record of the case and served upon the parties.
The &hairman shall be the residing &ommissioner of the first division and the four '>3 othermembers from the public sector shall be the residing &ommissioners of the second, third, fourth
and fifth divisions, respectively. In case of the effective absence or incapacity of the &hairman,the residing &ommissioner of the second division shall be the Acting &hairman.
The &hairman, aided by the 5#ecutive &ler! of the &ommission, shall have administrativesupervision over the &ommission and its regional branches and all its personnel, including the
5#ecutive 9abor Arbiters and 9abor Arbiters.
The &ommission, hen sitting en banc shall be assisted by the same 5#ecutive &ler! and, hen
acting thru its 4ivisions, by said 5#ecutive &ler!s for the second, third, fourth and fifth4ivisions, respectively, in the performance of such similar or e"uivalent functions and duties as
are discharged by the &ler! of &ourt and 4eputy &ler!s of &ourt of the &ourt of Appeals. 'As
amended by Section , )epublic Act *o. +-, /arch 0-, -1213
Art. 21'. (ea)*+arter#, Brache# a) Pro-icial Ete#io /it#.The &ommission and its6irst, Second and Third divisions shall have their main offices in /etropolitan /anila, and the
6ourth and 6ifth divisions in the &ities of &ebu and &agayan de 7ro, respectively. The
&ommission shall establish as many regional branches as there are regional offices of the4epartment of 9abor and 5mployment, sub$regional branches or provincial e#tension units.
There shall be as many 9abor Arbiters as may be necessary for the effective and efficient
operation of the &ommission. 5ach regional branch shall be headed by an 5#ecutive 9aborArbiter. 'As amended by Section +, )epublic Act *o. +-, /arch 0-, -1213
Art. 210. Appoit&et a) +ali!icatio#.The &hairman and other &ommissioners shall bemembers of the hilippine %ar and must have engaged in the practice of la in the hilippines
for at least fifteen '-3 years, ith at least five '3 years e#perience or e#posure in the field oflabor$management relations, and shall preferably be residents of the region here they are to
hold office. The 5#ecutive 9abor Arbiters and 9abor Arbiters shall li!eise be members of the
hilippine %ar and must have been engaged in the practice of la in the hilippines for at least
seven '3 years, ith at least three '(3 years e#perience or e#posure in the field of labor$management relations: rovided, Coever, that incumbent 5#ecutive 9abor Arbiters and 9abor
Arbiters ho have been engaged in the practice of la for at least five '3 years may be
considered as already "ualified for purposes of reappointment as such under this Act. The&hairman and the other &ommissioners, the 5#ecutive 9abor Arbiters and 9abor Arbiters shall
hold office during good behavior until they reach the age of si#ty$five years, unless sooner
removed for cause as provided by la or become incapacitated to discharge the duties of theiroffice.
The &hairman, the division residing &ommissioners and other &ommissioners shall be
appointed by the resident, subject to confirmation by the &ommission on Appointments.
Appointment to any vacancy shall come from the nominees of the sector hich nominated thepredecessor. The 5#ecutive 9abor Arbiters and 9abor Arbiters shall also be appointed by the
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resident, upon recommendation of the Secretary of 9abor and 5mployment and shall be subject
to the &ivil Service 9a, rules and regulations.
The Secretary of 9abor and 5mployment shall, in consultation ith the &hairman of the&ommission, appoint the staff and employees of the &ommission and its regional branches as the
needs of the service may re"uire, subject to the &ivil Service 9a, rules and regulations, andupgrade their current salaries, benefits and other emoluments in accordance ith la. 'As
amended by Section , )epublic Act *o. +-, /arch 0-, -1213
Art. 21. Salarie#, %ee!it# a) other e&ol+&et#.The &hairman and members of the
&ommission shall receive an annual salary at least e"uivalent to, and be entitled to the same
alloances and benefits as those of the residing Dustice and Associate Dustices of the &ourt ofAppeals, respectively. The 5#ecutive 9abor Arbiters shall receive an annual salary at least
e"uivalent to that of an Assistant )egional 4irector of the 4epartment of 9abor and 5mployment
and shall be entitled to the same alloances and benefits as that of a )egional 4irector of said
4epartment. The 9abor Arbiters shall receive an annual salary at least e"uivalent to, and be
entitled to the same alloances and benefits as that of an Assistant )egional 4irector of the4epartment of 9abor and 5mployment. In no case, hoever, shall the provision of this Article
result in the diminution of e#isting salaries, alloances and benefits of the aforementionedofficials. 'As amended by Section 2, )epublic Act *o. +-, /arch 0-, -1213
&hapter II
7B5)S A*4 4=TI5S
Art. 213. 4+ri#)ictio o! the La%or Ar%iter# a) the Co&&i##io.
a. 5#cept as otherise provided under this &ode, the 9abor Arbiters shall have original and
e#clusive jurisdiction to hear and decide, ithin thirty '(@3 calendar days after thesubmission of the case by the parties for decision ithout e#tension, even in the absence
of stenographic notes, the folloing cases involving all or!ers, hether agricultural ornon$agricultural:
-. =nfair labor practice cases;
0. Termination disputes;
(. If accompanied ith a claim for reinstatement, those cases that or!ers may file
involving ages, rates of pay, hours of or! and other terms and conditions of
employment;
>. &laims for actual, moral, e#emplary and other forms of damages arising from theemployer$employee relations;
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. &ases arising from any violation of Article 0+> of this &ode, including "uestions
involving the legality of stri!es and loc!outs; and
+. 5#cept claims for 5mployees &ompensation, Social Security, /edicare and
maternity benefits, all other claims arising from employer$employee relations,including those of persons in domestic or household service, involving an amount
e#ceeding five thousand pesos ',@@@.@@3 regardless of hether accompanied
ith a claim for reinstatement.
b. The &ommission shall have e#clusive appellate jurisdiction over all cases decided by
9abor Arbiters.
c. &ases arising from the interpretation or implementation of collective bargainingagreements and those arising from the interpretation or enforcement of company
personnel policies shall be disposed of by the 9abor Arbiter by referring the same to thegrievance machinery and voluntary arbitration as may be provided in said agreements.'As amended by Section 1, )epublic Act *o. +-, /arch 0-, -1213
Art. 215. Po6er# o! the Co&&i##io.The &ommission shall have the poer and authority:
a. To promulgate rules and regulations governing the hearing and disposition of cases
before it and its regional branches, as ell as those pertaining to its internal functions and
such rules and regulations as may be necessary to carry out the purposes of this &ode;'As amended by Section -@, )epublic Act *o. +-, /arch 0-, -1213
b. To administer oaths, summon the parties to a controversy, issue subpoenas re"uiring theattendance and testimony of itnesses or the production of such boo!s, papers, contracts,
records, statement of accounts, agreements, and others as may be material to a just
determination of the matter under investigation, and to testify in any investigation orhearing conducted in pursuance of this &ode;
c. To conduct investigation for the determination of a "uestion, matter or controversy ithin
its jurisdiction, proceed to hear and determine the disputes in the absence of any party
thereto ho has been summoned or served ith notice to appear, conduct its proceedings
or any part thereof in public or in private, adjourn its hearings to any time and place, refertechnical matters or accounts to an e#pert and to accept his report as evidence after
hearing of the parties upon due notice, direct parties to be joined in or e#cluded from the
proceedings, correct, amend, or aive any error, defect or irregularity hether insubstance or in form, give all such directions as it may deem necessary or e#pedient in
the determination of the dispute before it, and dismiss any matter or refrain from further
hearing or from determining the dispute or part thereof, here it is trivial or here furtherproceedings by the &ommission are not necessary or desirable; and
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d. To hold any person in contempt directly or indirectly and impose appropriate penalties
therefor in accordance ith la.
A person guilty of misbehavior in the presence of or so near the &hairman or any member
of the &ommission or any 9abor Arbiter as to obstruct or interrupt the proceedings before
the same, including disrespect toard said officials, offensive personalities toard others,or refusal to be sorn, or to anser as a itness or to subscribe an affidavit or deposition
hen lafully re"uired to do so, may be summarily adjudged in direct contempt by said
officials and punished by fine not e#ceeding five hundred pesos '@@3 or imprisonmentnot e#ceeding five '3 days, or both, if it be the &ommission, or a member thereof, or by
a fine not e#ceeding one hundred pesos '-@@3 or imprisonment not e#ceeding one '-3
day, or both, if it be a 9abor Arbiter.
The person adjudged in direct contempt by a 9abor Arbiter may appeal to the
&ommission and the e#ecution of the judgment shall be suspended pending the resolution
of the appeal upon the filing by such person of a bond on condition that he ill abide by
and perform the judgment of the &ommission should the appeal be decided against him.Dudgment of the &ommission on direct contempt is immediately e#ecutory and
unappealable. Indirect contempt shall be dealt ith by the &ommission or 9abor Arbiterin the manner prescribed under )ule - of the )evised )ules of &ourt; and 'As amended
by Section -@, )epublic Act *o. +-, /arch 0-, -1213
e. To enjoin or restrain any actual or threatened commission of any or all prohibited or
unlaful acts or to re"uire the performance of a particular act in any labor dispute hich,
if not restrained or performed forthith, may cause grave or irreparable damage to anyparty or render ineffectual any decision in favor of such party: rovided, That no
temporary or permanent injunction in any case involving or groing out of a labor
dispute as defined in this &ode shall be issued e#cept after hearing the testimony ofitnesses, ith opportunity for cross$e#amination, in support of the allegations of a
complaint made under oath, and testimony in opposition thereto, if offered, and only after
a finding of fact by the &ommission, to the effect:
-. That prohibited or unlaful acts have been threatened and ill be committed and
ill be continued unless restrained, but no injunction or temporary restraining
order shall be issued on account of any threat, prohibited or unlaful act, e#ceptagainst the person or persons, association or organization ma!ing the threat or
committing the prohibited or unlaful act or actually authorizing or ratifying the
same after actual !noledge thereof;
0. That substantial and irreparable injury to complainantEFGs property ill follo;
(. That as to each item of relief to be granted, greater injury ill be inflicted uponcomplainant by the denial of relief than ill be inflicted upon defendants by the
granting of relief;
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? Art. 228. Co&p+l#or" ar%itratio.The &ommission or any 9abor Arbiter shall have the
poer to as! the assistance of other government officials and "ualified private citizens to act as
compulsory arbitrators on cases referred to them and to fi# and assess the fees of suchcompulsory arbitrators, ta!ing into account the nature of the case, the time consumed in hearing
the case, the professional standing of the arbitrators, the financial capacity of the parties, and the
fees provided in the )ules of &ourt. ')epealed by Section -+, %atas ambansa %ilang -(@,August 0-, -12-3
Art. 221. Techical r+le# ot %i)i9 a) prior re#ort to a&ica%le #ettle&et.In any
proceeding before the &ommission or any of the 9abor Arbiters, the rules of evidence prevailing
in courts of la or e"uity shall not be controlling and it is the spirit and intention of this &odethat the &ommission and its members and the 9abor Arbiters shall use every and all reasonable
means to ascertain the facts in each case speedily and objectively and ithout regard to
technicalities of la or procedure, all in the interest of due process. In any proceeding before the&ommission or any 9abor Arbiter, the parties may be represented by legal counsel but it shall be
the duty of the &hairman, any residing &ommissioner or &ommissioner or any 9abor Arbiter to
e#ercise complete control of the proceedings at all stages.
Any provision of la to the contrary notithstanding, the 9abor Arbiter shall e#ert all effortstoards the amicable settlement of a labor dispute ithin his jurisdiction on or before the first
hearing. The same rule shall apply to the &ommission in the e#ercise of its original jurisdiction.
'As amended by Section --, )epublic Act *o. +-, /arch 0-, -1213
Art. 222. Appearace# a) Fee#.
a. *on$layers may appear before the &ommission or any 9abor Arbiter only:
-. If they represent themselves; or
0. If they represent their organization or members thereof.
b. *o attorneyEFGs fees, negotiation fees or similar charges of any !ind arising from any
collective bargaining agreement shall be imposed on any individual member of the
contracting union: rovided, Coever, that attorneyEFGs fees may be charged againstunion funds in an amount to be agreed upon by the parties. Any contract, agreement or
arrangement of any sort to the contrary shall be null and void. 'As amended by
residential 4ecree *o. -+1-, /ay -, -12@3
&hapter IIIA5A9
Art. 22$. Appeal.4ecisions, aards, or orders of the 9abor Arbiter are final and e#ecutory
unless appealed to the &ommission by any or both parties ithin ten '-@3 calendar days from
receipt of such decisions, aards, or orders. Such appeal may be entertained only on any of thefolloing grounds:
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a. If there is prima facie evidence of abuse of discretion on the part of the 9abor Arbiter;
b. If the decision, order or aard as secured through fraud or coercion, including graft andcorruption;
c. If made purely on "uestions of la; and
d. If serious errors in the findings of facts are raised hich ould cause grave or irreparable
damage or injury to the appellant.
In case of a judgment involving a monetary aard, an appeal by the employer may be perfected
only upon the posting of a cash or surety bond issued by a reputable bonding company dulyaccredited by the &ommission in the amount e"uivalent to the monetary aard in the judgment
appealed from.
In any event, the decision of the 9abor Arbiter reinstating a dismissed or separated employee,insofar as the reinstatement aspect is concerned, shall immediately be e#ecutory, even pendingappeal. The employee shall either be admitted bac! to or! under the same terms and conditions
prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated
in the payroll. The posting of a bond by the employer shall not stay the e#ecution forreinstatement provided herein.
To discourage frivolous or dilatory appeals, the &ommission or the 9abor Arbiter shall impose
reasonable penalty, including fines or censures, upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party
ho shall file an anser not later than ten '-@3 calendar days from receipt thereof.
The &ommission shall decide all cases ithin tenty '0@3 calendar days from receipt of the
anser of the appellee. The decision of the &ommission shall be final and e#ecutory after ten
'-@3 calendar days from receipt thereof by the parties.
Any la enforcement agency may be deputized by the Secretary of 9abor and 5mployment orthe &ommission in the enforcement of decisions, aards or orders. 'As amended by Section -0,
)epublic Act *o. +-, /arch 0-, -1213
Art. 22'. Eec+tio o! )eci#io#, or)er# or a6ar)#.
a. The Secretary of 9abor and 5mployment or any )egional 4irector, the &ommission or
any 9abor Arbiter, or /ed$Arbiter or
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b. The parties may, at any time, by mutual agreement, ithdra a case from the
&onciliation Section and jointly submit it to a 9abor Arbiter, e#cept deadloc!s in
collective bargaining. ')epealed by Section -+, %atas ambansa %ilang -(@, August 0-,-12-3
Art. 227. I##+ace o! #+%poea#.The %ureau shall have the poer to re"uire the appearance ofany person or the production of any paper, document or matter relevant to a labor dispute under
its jurisdiction, either at the re"uest of any interested party or at its on initiative.
Art. 2$8. Appoit&et o! %+rea+ per#oel.The Secretary of 9abor and 5mployment may
appoint, in addition to the present personnel of the %ureau and the Industrial )elations 4ivisions,
such number of e#aminers and other assistants as may be necessary to carry out the purpose ofthe &ode. 'As amended by Section -, )epublic Act *o. +-, /arch 0-, -1213
Art. 2$1. Re9i#tr" o! +io# a) !ile o! collecti-e %ar9aii9 a9ree&et#.The %ureau shall
!eep a registry of legitimate labor organizations. The %ureau shall also maintain a file of all
collective bargaining agreements and other related agreements and records of settlement of labordisputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and
accessible to interested parties under conditions prescribed by the Secretary of 9abor and
5mployment, provided that no specific information submitted in confidence shall be disclosed
unless authorized by the Secretary, or hen it is at issue in any judicial litigation, or hen publicinterest or national security so re"uires.
Bithin thirty '(@3 days from the e#ecution of a &ollective %argaining Agreement, the parties
shall submit copies of the same directly to the %ureau or the )egional 7ffices of the 4epartmentof 9abor and 5mployment for registration, accompanied ith verified proofs of its posting in
to conspicuous places in the place of or! and ratification by the majority of all the or!ers in
the bargaining unit. The %ureau or )egional 7ffices shall act upon the application forregistration of such &ollective %argaining Agreement ithin five '3 calendar days from receiptthereof. The )egional 7ffices shall furnish the %ureau ith a copy of the &ollective %argaining
Agreement ithin five '3 days from its submission.
The %ureau or )egional 7ffice shall assess the employer for every &ollective %argaining
Agreement a registration fee of not less than one thousand pesos '-,@@@.@@3 or in any otheramount as may be deemed appropriate and necessary by the Secretary of 9abor and 5mployment
for the effective and efficient administration of the
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Art. 2$$. Pri-ile9e) co&&+icatio.Information and statements made at conciliation
proceedings shall be treated as privileged communication and shall not be used as evidence in
the &ommission. &onciliators and similar officials shall not testify in any court or body regardingany matters ta!en up at conciliation proceedings conducted by them.
Title I, -12+3
d. If the applicant union has been in e#istence for one or more years, copies of its annualfinancial reports; and
e. 6our '>3 copies of the constitution and by$las of the applicant union, minutes of its
adoption or ratification, and the list of the members ho participated in it. 'As amended
by %atas ambansa %ilang -(@, August 0-, -12-3
Art. 2$0. Actio o applicatio.The %ureau shall act on all applications for registration ithinthirty '(@3 days from filing.
All re"uisite documents and papers shall be certified under oath by the secretary or the treasurerof the organization, as the case may be, and attested to by its president.
Art. 2$. Deial o! re9i#tratio: appeal.The decision of the 9abor )elations 4ivision in theregional office denying registration may be appealed by the applicant union to the %ureau ithin
ten '-@3 days from receipt of notice thereof.
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Art. 2$3. A))itioal re*+ire&et# !or !e)eratio# or atioal +io#. Subject to Article 0(2,
if the applicant for registration is a federation or a national union, it shall, in addition to the
re"uirements of the preceding Articles, submit the folloing:
a. roof of the affiliation of at least ten '-@3 locals or chapters, each of hich must be a duly
recognized collective bargaining agent in the establishment or industry in hich itoperates, supporting the registration of such applicant federation or national union; and
b. The names and addresses of the companies here the locals or chapters operate and the
list of all the members in each company involved.
? Art. 2$5. Co)itio# !or re9i#tratio o! !e)eratio# or atioal +io#. *o federation ornational union shall be registered to engage in any organization activity in more than one
industry in any area or region, and no federation or national union shall be registered to engage
in any organizational activity in more than one industry all over the country.
The federation or national union hich meets the re"uirements and conditions herein prescribedmay organize and affiliate locals and chapters ithout registering such locals or chapters ith the
%ureau.
9ocals or chapters shall have the same rights and privileges as if they ere registered in the
%ureau, provided that such federation or national union organizes such locals or chapters ithinits assigned organizational field of activity as may be prescribed by the Secretary of 9abor.
The %ureau shall see to it that federations and national unions shall only organize locals and
chapters ithin a specific industry or union. ')epealed by 5#ecutive 7rder *o. ---, 4ecember
0>, -12+3
Art. 2$5. Cacellatio o! re9i#tratio: appeal.The certificate of registration of any legitimatelabor organization, hether national or local, shall be cancelled by the %ureau if it has reason to
believe, after due hearing, that the said labor organization no longer meets one or more of the
re"uirements herein prescribed.
?The %ureau upon approval of this &ode shall immediately institute cancellation proceedings and
ta!e such other steps as may be necessary to restructure all e#isting registered labor
organizations in accordance ith the objective envisioned above. ')epealed by 5#ecutive 7rder
*o. ---, 4ecember 0>, -12+3
Art. 2$7. ;ro+)# !or cacellatio o! +io re9i#tratio.The folloing shall constitutegrounds for cancellation of union registration:
a. /isrepresentation, false statement or fraud in connection ith the adoption or ratification
of the constitution and by$las or amendments thereto, the minutes of ratification and thelist of members ho too! part in the ratification;
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imposed;
b. The members shall be entitled to full and detailed reports from their officers andrepresentatives of all financial transactions as provided for in the constitution and by$las
of the organization;
c. The members shall directly elect their officers, including those of the national union or
federation, to hich they or their union is affiliated, by secret ballot at intervals of five'3 years. *o "ualification re"uirements for candidacy to any position shall be imposed
other than membership in good standing in subject labor organization. The secretary or
any other responsible union officer shall furnish the Secretary of 9abor and 5mployment
ith a list of the nely$elected officers, together ith the appointive officers or agentsho are entrusted ith the handling of funds, ithin thirty '(@3 calendar days after the
election of officers or from the occurrence of any change in the list of officers of the labor
organization; 'As amended by Section -+, )epublic Act *o. +-, /arch 0-, -1213
d. The members shall determine by secret ballot, after due deliberation, any "uestion ofmajor policy affecting the entire membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot impractical, in hich case, the
board of directors of the organization may ma!e the decision in behalf of the generalmembership;
e. *o labor organization shall !noingly admit as members or continue in membership anyindividual ho belongs to a subversive organization or ho is engaged directly or
indirectly in any subversive activity;
f. *o person ho has been convicted of a crime involving moral turpitude shall be eligible
for election as a union officer or for appointment to any position in the union;
g. *o officer, agent or member of a labor organization shall collect any fees, dues, or other
contributions in its behalf or ma!e any disbursement of its money or funds unless he isduly authorized pursuant to its constitution and by$las;
h. 5very payment of fees, dues or other contributions by a member shall be evidenced by a
receipt signed by the officer or agent ma!ing the collection and entered into the record ofthe organization to be !ept and maintained for the purpose;
i. The funds of the organization shall not be applied for any purpose or object other thanthose e#pressly provided by its constitution and by$las or those e#pressly authorized by
ritten resolution adopted by the majority of the members at a general meeting duly
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called for the purpose;
j. 5very income or revenue of the organization shall be evidenced by a record shoing its
source, and every e#penditure of its funds shall be evidenced by a receipt from the person
to hom the payment is made, hich shall state the date, place and purpose of suchpayment. Such record or receipt shall form part of the financial records of the
organization.
Any action involving the funds of the organization shall prescribe after three '(3 years
from the date of submission of the annual financial report to the 4epartment of 9abor and
5mployment or from the date the same should have been submitted as re"uired by la,
hichever comes earlier: rovided, That this provision shall apply only to a legitimatelabor organization hich has submitted the financial report re"uirements under this &ode:
rovided, further, that failure of any labor organization to comply ith the periodic
financial reports re"uired by la and such rules and regulations promulgated thereundersi# '+3 months after the effectivity of this Act shall automatically result in the cancellation
of union registration of such labor organization; 'As amended by Section -+, )epublic
Act *o. +-, /arch 0-, -1213
!. The officers of any labor organization shall not be paid any compensation other than thesalaries and e#penses due to their positions as specifically provided for in its constitution
and by$las, or in a ritten resolution duly authorized by a majority of all the members
at a general membership meeting duly called for the purpose. The minutes of the meeting
and the list of participants and ballots cast shall be subject to inspection by the Secretaryof 9abor or his duly authorized representatives. Any irregularities in the approval of the
resolutions shall be a ground for impeachment or e#pulsion from the organization;
l. The treasurer of any labor organization and every officer thereof ho is responsible for
the account of such organization or for the collection, management, disbursement,custody or control of the funds, moneys and other properties of the organization, shall
render to the organization and to its members a true and correct account of all moneys
received and paid by him since he assumed office or since the last day on hich he
rendered such account, and of all bonds, securities and other properties of theorganization entrusted to his custody or under his control. The rendering of such account
shall be made:
-. At least once a year ithin thirty '(@3 days after the close of its fiscal year;
0. At such other times as may be re"uired by a resolution of the majority of the
members of the organization; and
(. =pon vacating his office.
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The account shall be duly audited and verified by affidavit and a copy thereof shall be
furnished the Secretary of 9abor.
m. The boo!s of accounts and other records of the financial activities of any labor
organization shall be open to inspection by any officer or member thereof during officehours;
n. *o special assessment or other e#traordinary fees may be levied upon the members of a
labor organization unless authorized by a ritten resolution of a majority of all the
members in a general membership meeting duly called for the purpose. The secretary ofthe organization shall record the minutes of the meeting including the list of all members
present, the votes cast, the purpose of the special assessment or fees and the recipient of
such assessment or fees. The record shall be attested to by the president.
o. 7ther than for mandatory activities under the &ode, no special assessments,attorneyEFGs fees, negotiation fees or any other e#traordinary fees may be chec!ed off
from any amount due to an employee ithout an individual ritten authorization duly
signed by the employee. The authorization should specifically state the amount, purpose
and beneficiary of the deduction; and
p. It shall be the duty of any labor organization and its officers to inform its members on theprovisions of its constitution and by$las, collective bargaining agreement, the prevailing
labor relations system and all their rights and obligations under e#isting labor las.
6or this purpose, registered labor organizations may assess reasonable dues to finance labor
relations seminars and other labor education activities.
Any violation of the above rights and conditions of membership shall be a ground for
cancellation of union registration or e#pulsion of officers from office, hichever is appropriate.
At least thirty percent '(@J3 of the members of a union or any member or members specially
concerned may report such violation to the %ureau. The %ureau shall have the poer to hear anddecide any reported violation to mete the appropriate penalty.
&riminal and civil liabilities arising from violations of above rights and conditions of
membership shall continue to be under the jurisdiction of ordinary courts.
&hapter III)IHCTS 76 95HITI/AT5 9A%7) 7)HA*IATI7*S
Art. 2'2. Ri9ht# o! le9iti&ate la%or or9ai
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b. To be certified as the e#clusive representative of all the employees in an appropriate
bargaining unit for purposes of collective bargaining;
c. To be furnished by the employer, upon ritten re"uest, ith its annual audited financial
statements, including the balance sheet and the profit and loss statement, ithin thirty'(@3 calendar days from the date of receipt of the re"uest, after the union has been duly
recognized by the employer or certified as the sole and e#clusive bargaining
representative of the employees in the bargaining unit, or ithin si#ty '+@3 calendar daysbefore the e#piration of the e#isting collective bargaining agreement, or during the
collective bargaining negotiation;
d. To on property, real or personal, for the use and benefit of the labor organization and its
members;
e. To sue and be sued in its registered name; and
f. To underta!e all other activities designed to benefit the organization and its members,
including cooperative, housing, elfare and other projects not contrary to la.
*otithstanding any provision of a general or special la to the contrary, the income and theproperties of legitimate labor organizations, including grants, endoments, gifts, donations and
contributions they may receive from fraternal and similar organizations, local or foreign, hich
are actually, directly and e#clusively used for their laful purposes, shall be free from ta#es,duties and other assessments. The e#emptions provided herein may be ithdran only by a
special la e#pressly repealing this provision. 'As amended by Section -, )epublic Act *o.
+-, /arch 0-, -1213
Title , -12+3
d. The notice must be in accordance ith such implementing rules and regulations as the
/inister of 9abor and 5mployment may promulgate.
e. 4uring the cooling$off period, it shall be the duty of the /inistry to e#ert all efforts at
mediation and conciliation to effect a voluntary settlement. Should the dispute remainunsettled until the lapse of the re"uisite number of days from the mandatory filing of the
notice, the labor union may stri!e or the employer may declare a loc!out.
f. A decision to declare a stri!e must be approved by a majority of the total union
membership in the bargaining unit concerned, obtained by secret ballot in meetings orreferenda called for that purpose. A decision to declare a loc!out must be approved by a
majority of the board of directors of the corporation or association or of the partners in a
partnership, obtained by secret ballot in a meeting called for that purpose. The decision
shall be valid for the duration of the dispute based on substantially the same groundsconsidered hen the stri!e or loc!out vote as ta!en. The /inistry may, at its on
initiative or upon the re"uest of any affected party, supervise the conduct of the secret
balloting. In every case, the union or the employer shall furnish the /inistry the results ofthe voting at least seven days before the intended stri!e or loc!out, subject to the cooling$
off period herein provided. 'As amended by %atas ambansa %ilang -(@, August 0-,
-12- and further amended by 5#ecutive 7rder *o. ---, 4ecember 0>, -12+3
g. Bhen, in his opinion, there e#ists a labor dispute causing or li!ely to cause a stri!e orloc!out in an industry indispensable to the national interest, the Secretary of 9abor and
5mployment may assume jurisdiction over the dispute and decide it or certify the same to
the &ommission for compulsory arbitration. Such assumption or certification shall have
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the effect of automatically enjoining the intended or impending stri!e or loc!out as
specified in the assumption or certification order. If one has already ta!en place at the
time of assumption or certification, all stri!ing or loc!ed out employees shallimmediately return$to$or! and the employer shall immediately resume operations and
readmit all or!ers under the same terms and conditions prevailing before the stri!e or
loc!out. The Secretary of 9abor and 5mployment or the &ommission may see! theassistance of la enforcement agencies to ensure compliance ith this provision as ell
as ith such orders as he may issue to enforce the same.
In line ith the national concern for and the highest respect accorded to the right of
patients to life and health, stri!es and loc!outs in hospitals, clinics and similar medical
institutions shall, to every e#tent possible, be avoided, and all serious efforts, not only by
labor and management but government as ell, be e#hausted to substantially minimize, ifnot prevent, their adverse effects on such life and health, through the e#ercise, hoever
legitimate, by labor of its right to stri!e and by management to loc!out. In labor disputes
adversely affecting the continued operation of such hospitals, clinics or medical
institutions, it shall be the duty of the stri!ing union or loc!ing$out employer to provideand maintain an effective s!eletal or!force of medical and other health personnel,
hose movement and services shall be unhampered and unrestricted, as are necessary toinsure the proper and ade"uate protection of the life and health of its patients, most
especially emergency cases, for the duration of the stri!e or loc!out. In such cases,
therefore, the Secretary of 9abor and 5mployment may immediately assume, ithintenty four '0>3 hours from !noledge of the occurrence of such a stri!e or loc!out,
jurisdiction over the same or certify it to the &ommission for compulsory arbitration. 6or
this purpose, the contending parties are strictly enjoined to comply ith such orders,
prohibitions andor injunctions as are issued by the Secretary of 9abor and 5mploymentor the &ommission, under pain of immediate disciplinary action, including dismissal or
loss of employment status or payment by the loc!ing$out employer of bac!ages,
damages and other affirmative relief, even criminal prosecution against either or both ofthem.
The foregoing notithstanding, the resident of the hilippines shall not be precludedfrom determining the industries that, in his opinion, are indispensable to the national
interest, and from intervening at any time and assuming jurisdiction over any such labor
dispute in order to settle or terminate the same.
h. %efore or at any stage of the compulsory arbitration process, the parties may opt to
submit their dispute to voluntary arbitration.
i. The Secretary of 9abor and 5mployment, the &ommission or the voluntary arbitratorshall decide or resolve the dispute, as the case may be. The decision of the resident, the
Secretary of 9abor and 5mployment, the &ommission or the voluntary arbitrator shall be
final and e#ecutory ten '-@3 calendar days after receipt thereof by the parties. 'Asamended by Section 0, )epublic Act *o. +-, /arch 0-, -1213
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Art. 20. I&pro-e) o!!er %alloti9.In an effort to settle a stri!e, the 4epartment of 9abor and
5mployment shall conduct a referendum by secret ballot on the improved offer of the employer
on or before the (@th day of the stri!e. Bhen at least a majority of the union members vote toaccept the improved offer the stri!ing or!ers shall immediately return to or! and the
employer shall thereupon readmit them upon the signing of the agreement.
In case of a loc!out, the 4epartment of 9abor and 5mployment shall also conduct a referendum
by secret balloting on the reduced offer of the union on or before the (@th day of the loc!out.Bhen at least a majority of the board of directors or trustees or the partners holding the
controlling interest in the case of a partnership vote to accept the reduced offer, the or!ers shall
immediately return to or! and the employer shall thereupon readmit them upon the signing ofthe agreement. 'Incorporated by Section 02, )epublic Act *o. +-, /arch 0-, -1213
Art. 2. Re*+ire&et !or arre#t a) )etetio.5#cept on grounds of national security and
public peace or in case of commission of a crime, no union members or union organizers may be
arrested or detained for union activities ithout previous consultations ith the Secretary of
9abor.
&hapter II
ASSISTA*&5 T7 9A%7) 7)HA*IATI7*S
Art. 23. A##i#tace %" the Depart&et o! La%or.The 4epartment of 9abor, at the initiative ofthe Secretary of 9abor, shall e#tend special assistance to the organization, for purposes of
collective bargaining, of the most underprivileged or!ers ho, for reasons of occupation,
organizational structure or insufficient incomes, are not normally covered by major labororganizations or federations.
Art. 25. A##i#tace %" the I#tit+te o! La%or a) apo6er St+)ie#.The Institute of 9aborand /anpoer Studies shall render technical and other forms of assistance to labor organizations
and employer organizations in the field of labor education, especially pertaining to collectivebargaining, arbitration, labor standards and the 9abor &ode of the hilippines in general.
&hapter III
67)5IH* A&TI
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a. *o foreign individual, organization or entity may give any donations, grants or other
forms of assistance, in cash or in !ind, directly or indirectly, to any labor organization,
group of or!ers or any au#iliary thereof, such as cooperatives, credit unions andinstitutions engaged in research, education or communication, in relation to trade union
activities, ithout prior permission by the Secretary of 9abor.
8Trade union activities8 shall mean:
-. organization, formation and administration of labor organization;
0. negotiation and administration of collective bargaining agreements;
(. all forms of concerted union action;
>. organizing, managing, or assisting union conventions, meetings, rallies, referenda,
teach$ins, seminars, conferences and institutes;
. any form of participation or involvement in representation proceedings,
representation elections, consent elections, union elections; and
+. other activities or actions analogous to the foregoing.
b. This prohibition shall e"ually apply to foreign donations, grants or other forms of
assistance, in cash or in !ind, given directly or indirectly to any employer or
employerEFGs organization to support any activity or activities affecting trade unions.
c. The Secretary of 9abor shall promulgate rules and regulations to regulate and control the
giving and receiving of such donations, grants, or other forms of assistance, including the
mandatory reporting of the amounts of the donations or grants, the specific recipients
thereof, the projects or activities proposed to be supported, and their duration.
Art. 231. Applica%ilit" to !ar& teat# a) r+ral 6orer#.The provisions of this Title
pertaining to foreign organizations and activities shall be deemed applicable li!eise to all
organizations of farm tenants, rural or!ers, and the li!e: rovided, That in appropriate cases,
the Secretary of Agrarian )eform shall e#ercise the poers and responsibilities vested by thisTitle in the Secretary of 9abor.
&hapter I of this &ode shall be punished
by a fine of not less than one thousand pesos '-,@@@.@@3 nor more than ten thousand
pesos '-@,@@@.@@3 andor imprisonment for not less than three months nor more thanthree '(3 years, or both such fine and imprisonment, at the discretion of the court.
rosecution under this provision shall preclude prosecution for the same act under the
)evised enal &ode, and vice versa.
b. =pon the recommendation of the /inister of 9abor and 5mployment and the /inister of
*ational 4efense, foreigners ho violate the provisions of this Title shall be subject toimmediate and summary deportation by the &ommission on Immigration and 4eportation
and shall be permanently barred from re$entering the country ithout the special
permission of the resident of the hilippines. 'As amended by Section -+, %atas
ambansa %ilang -(@ and Section , %atas ambansa %ilang 003
Title IM
S5&IA9 )7
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h. any other aspects of employer$employee relations concerning the promotion of harmony
and understanding beteen the parties; and
i. the relevance of labor las and labor relations to national development.
The Secretary of 9abor shall also in"uire into the causes of industrial unrest and ta!e allthe necessary steps ithin his poer as may be prescribed by la to alleviate the same,
and shall from time to time recommend the enactment of such remedial legislation as in
his judgment may be desirable for the maintenance and promotion of industrial peace.
Art. 23'. Vi#itorial po6er.The Secretary of 9abor and 5mployment or his duly authorizedrepresentative is hereby empoered to in"uire into the financial activities of legitimate labor
organizations upon the filing of a complaint under oath and duly supported by the ritten
consent of at least tenty percent '0@J3 of the total membership of the labor organizationconcerned and to e#amine their boo!s of accounts and other records to determine compliance or
non$compliance ith the la and to prosecute any violations of the la and the union
constitution and by$las: rovided, That such in"uiry or e#amination shall not be conductedduring the si#ty '+@3$day freedom period nor ithin the thirty '(@3 days immediately preceding
the date of election of union officials. 'As amended by Section (-, )epublic Act *o. +-,
/arch 0-, -1213
Art. 230. Triparti#& a) tripartite co!erece#.
a. Tripartism in labor relations is hereby declared a State policy. Toards this end, or!ersand employers shall, as far as practicable, be represented in decision and policy$ma!ing
bodies of the government.
b. The Secretary of 9abor and 5mployment or his duly authorized representatives may,
from time to time, call a national, regional, or industrial tripartite conference ofrepresentatives of government, or!ers and employers for the consideration and adoptionof voluntary codes of principles designed to promote industrial peace based on social
justice or to align labor movement relations ith established priorities in economic and
social development. In calling such conference, the Secretary of 9abor and 5mployment
may consult ith accredited representatives of or!ers and employers. 'As amended bySection (0, )epublic Act *o. +-, /arch 0-, -1213
Art. 23. ;o-er&et e&plo"ee#.The terms and conditions of employment of all government
employees, including employees of government$oned and controlled corporations, shall be
governed by the &ivil Service 9a, rules and regulations. Their salaries shall be standardized by
the *ational Assembly as provided for in the *e &onstitution. Coever, there shall be noreduction of e#isting ages, benefits and other terms and conditions of employment being
enjoyed by them at the time of the adoption of this &ode.
Art. 233. i#cellaeo+# pro-i#io#.
a. All unions are authorized to collect reasonable membership fees, union dues, assessments
and fines and other contributions for labor education and research, mutual death and
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hospitalization benefits, elfare fund, stri!e fund and credit and cooperative
underta!ings. 'As amended by Section ((, )epublic Act *o. +-, /arch 0-, -1213
b. Subject to the constitutional right of or!ers to security of tenure and their right to be
protected against dismissal e#cept for a just and authorized cause and ithout prejudice
to the re"uirement of notice under Article 02( of this &ode, the employer shall furnish theor!er hose employment is sought to be terminated a ritten notice containing a
statement of the causes for termination and shall afford the latter ample opportunity to be
heard and to defend himself ith the assistance of his representative if he so desires inaccordance ith company rules and regulations promulgated pursuant to guidelines set
by the 4epartment of 9abor and 5mployment. Any decision ta!en by the employer shall
be ithout prejudice to the right of the or!er to contest the validity or legality of his
dismissal by filing a complaint ith the regional branch of the *ational 9abor )elations&ommission. The burden of proving that the termination as for a valid or authorized
cause shall rest on the employer. The Secretary of the 4epartment of 9abor and
5mployment may suspend the effects of the termination pending resolution of the dispute
in the event of a prima facie finding by the appropriate official of the 4epartment of9abor and 5mployment before hom such dispute is pending that the termination may
cause a serious labor dispute or is in implementation of a mass lay$off. 'As amended bySection ((, )epublic Act *o. +-, /arch 0-, -1213
c. Any employee, hether employed for a definite period or not, shall, beginning on his
first day of service, be considered as an employee for purposes of membership in any
labor union. 'As amended by Section ((, )epublic Act *o. +-3
d. *o doc!et fee shall be assessed in labor standards disputes. In all other disputes, doc!et
fees may be assessed against the filing party, provided that in bargaining deadloc!, suchfees shall be shared e"ually by the negotiating parties.
e. The /inister of 9abor and 5mployment and the /inister of the %udget shall cause to be
created or reclassified in accordance ith la such positions as may be necessary to carry
out the objectives of this &ode and cause the upgrading of the salaries of the personnel
involved in the 9abor )elations System of the /inistry. 6unds needed for this purposeshall be provided out of the Special Activities 6und appropriated by %atas ambansa %lg.
2@ and from annual appropriations thereafter. 'Incorporated by %atas ambansa %ilang
-(@, August 0-, -12-3
f. A special
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